In this article, we talk about another cryptocurrency called “Binance coin”. what is BNB? where and how to use it? and further information to know.
What is BNB?
“Binance Coin” (BNB) is a cryptocurrency (token) that was created by one of the largest cryptocurrency exchange, Binance back in 2017. All BNB tokens were created and launched during an Initial Coin Offering (ICO).
BNB was made available to the public for the first time on July 25, 2017, experiencing some volatility in the first several months. But now calmer waters are appearing to prevail, and the coin is enjoying a steady rise since the beginning of 2018.
BNB is an ethereum-based (ERC-20) token that can be used to trade cryptocurrencies and pay for fees within the Binance exchange. however, it subsequently migrated to Binance’s proprietary blockchain, “Binance Chain”.
Binance Chain was created with the intent of operating a native crypto asset. It meant to offer an alternative way to pay for fees charged to traders using the exchange. Binance has since developed a decentralized exchange (DEX) on top of the Binance Chain.
USAGE OF BNB TOKENS:
Binance tokens users are currently using BNB, to pay fees on the exchange and trading cryptocurrencies. Instead, Binance offers a rebate as an incentive for up to five years of membership.
So obviously the main purpose of BNB tokens is to give you a discount on fees incurred when it is paid with BNB. This might be withdrawal fees, trade fees or anything else.
The discount decreases year on year in line with the 20% bought back each year.
- First Year – 50% fee discount
- Second Year – 25% fee discount
- Third Year – 12.5% fee discount
Binance coin is suitable for a wide variety of traders. Long-term traders can benefit from the absence of overnight fees and maintain a hold position on BNB, predicting a rise in its popularity and value.
Day traders can anticipate the potential for volatility that often provides the opportunity for short-term gain
Besides being used by traders to get discounts on their trading fees, BNBs can also be used to pay for travel expenses (such as hotels and flights booking), to buy virtual gifts, to shop using a credit card, and much more.
Besides, you can also make impactful donations to charity through the Binance Charity Foundation (BCF) project. In the near future, BNB will be used as gas on the Binance Chain and the Binance Decentralized Exchange (DEX). Currently, you can buy BNB directly on the Binance exchange.
To learn more about BNB coin burns, please click on this video at Binance Academy.